USDA Awards $9 Million in Grants and Loan Guarantees for Clean Energy

The U.S. Department of Agriculture (USDA) announced on August 8th that it
will award $9 million in grants and loan guarantees for 12 renewable
energy and energy efficiency projects in Iowa, Kansas, and Oregon. The
funds will support three renewable energy installations in Iowa: a
2-megawatt wind turbine, a biodiesel production facility, and an
anaerobic digester to convert manure into a gaseous fuel. The USDA
funds will also support a biomass-fueled combined heat and power
system at Rough & Ready Lumber in Cave Junction, Oregon, a project
that was coincidentally mentioned in last week's newsletter.
Additional grants and loans will go toward more efficient grain dryers
at three Iowa facilities and energy efficiency improvements for two
businesses in Kansas and one in Oregon. See the
USDA press release,
the recipients list
(PDF 21 KB),
the USDA Rural Development Web site,
and the story from last week's newsletter.
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The USDA also released an analysis of its renewable energy and energy
efficiency programs, prepared by USDA economists. The report notes
that the USDA spent $1.4 billion on energy-related programs over the
past five years and expects to spend another $272 million this year.
More than half a billion dollars have directly subsidized biofuels
production, although that program is slated to end this year. The USDA
Rural Development program has supported 650 energy projects, including
168 energy efficiency projects, 132 biofuel projects, 130 wind power
projects, 92 anaerobic digesters, and a variety of other renewable
energy projects. The report examines a variety of policy options for
future consideration, including a higher Renewable Fuels Standard,
extended renewable energy tax credits, a production subsidy for
cellulosic ethanol, and an expanded research program. See the
USDA press release
and the executive summary
(PDF 156 KB)
and full text
(PDF 235 KB)
of the report.